Volusia County Neighborhood Stabilization Program guidelines June 4, 2009

1. 1 Volusia County Neighborhood Stabilization Program guidelines June 4, 2009

2. 2 County Council action Review Neighborhood Stabilization Program Approve the NSP guidelines Set standards and provide staff flexibility and latitude in implementation Approve the attached resolution Give authority to county manager/designee to purchase homes Give authority to county chair to convey title

3. 3 NSP background Housing and Economic Recovery Act (HERA) of 2008 Direct allocation of $5,222,831 18 months to spend – agreement executed March 3, 2009 Acquire/redevelop abandoned and foreclosed properties in target areas For households with income up to 120 percent of the area median income (AMI)

4. 4 Primary/secondary local target areas (Selected from HUD database based on census tracks/block groups with high foreclosure risk)

5. 5 NSP programs for Volusia County Homeownership – 60 percent of budget County acquisition, rehabilitation/sale with Homebuyer Assistance Buyer walk-in – direct purchase/rehab NSP rental housing – 25 percent of budget Demolition/redevelopment – 5 percent Administration – 10 percent

6. 6 Neighborhood Stabilization Program process

7. 7 Inventory Affordable homes – Listed price not to exceed $189,750 Type of home – Single-family residences, town homes, condominiums Status of title – Lender-owned through foreclosure Occupancy status – Vacant, unoccupied Marketability – Marketable to a first-time homebuyer Letter of interest Federal requirement, determine if lender is interested in voluntary purchase through NSP

8. 8 Negotiation and contract Purchase price limitation – $189,750 Home inspection Appraisal Acquisition price must be a discount from appraised value (5 percent - 25 percent) Appraisal – Must be performed by county-selected appraisal company

9. 9 Due diligence Environmental review – federal requirement – conducted by Community Assistance Lead-based paint inspection – conducted by Community Assistance lead contractors Title search, survey and status of title – title reviewed by Legal

10. 10 Closing – County purchase County manager or his designee is authorized to execute the required documents to acquire the home Attended by county manager designee, county staff Post closing County keeps the home maintained and secure

11. 11 Rehabilitation and repair Procedures will mirror Community Assistance’s current rehabilitation process Work write-up and bid Selection of contractor Inspection of process Draw schedule for payments

12. 12 Marketing/sale to homebuyer Marketed through various means, including listing with real estate broker Conveying title – County manager or his designee is authorized to execute the required documents

13. 13 Homebuyer assistance Similar to county’s existing program Occupy as primary residence for 15 years County’s mortgage has shared appreciation feature Community Assistance will conduct outreach and training for NSP Affordable Housing Partners

14. 14 Assistance amounts * Based on a family of two with $300 monthly debt, 6 percent interest, $1,500 property insurance and $700 property taxes.

15. 15 Shared appreciation – new requirement

16. 16 Closing – homebuyer purchase Conveying title – county chair is authorized to execute the deed and other documents to sell the home Proceeds of the sale – recycled into the NSP program

17. 17 County acquisition, rehabilitation, sale with homebuyer assistance Inventory Letter of interest Appraisal Negotiation/contract Due diligence Closing Post closing Rehabilitation Homebuyer assistance Marketing/selling Eligible buyer Back into program

18. 18 Buyer walk-in program –eligible buyer finds home Homebuyer and NSP Affordable Housing Partner responsible to find home that meets NSP criteria (same acquisition criteria as county) Home is affordable to the buyer Buyer meets the income guidelines of NSP program (income does not exceed 120 percent of area medium income)

19. 19 Buyer walk-in program –differences from county acquisition Closing – homebuyer Buyer purchases home First mortgagee agrees to county providing rehabilitation Buyer moves in Buyer does not move into home until rehabilitation is completed

20. 20 Acquisition of NSP home buyer walk-in Eligible buyer home selection Letter of interest Appraisal Negotiation/contract Homebuyer assistance Due diligence Closing Rehabilitation Eligible buyer

21. 21 NSP rental housing Partner selection – notice of funding availability Must be nonprofit organization Member of Volusia/Flagler Homeless Continuum of Care and/or Locally-certified Community Housing Development Organization

22. 22 Demolition and redevelopment Acquire foreclosed and abandoned homes which are blighted to be demolished for the purpose of redevelopment (public infrastructure, public facility, etc.)

23. 23 County Council action Review Neighborhood Stabilization Program Approve the NSP guidelines Set standards and provide staff flexibility and latitude in implementation Approve the attached resolution Give authority to county manager/designee to purchase homes Give authority to county chair to convey title